TMI Blog2017 (2) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... ema hall, plant and machinery, furniture and fixture for exhibition of films. We feel that the dominant and prime intention of the parties entered into agreement to conduct business and to give comfort level by the assessee to the cinema owner. The day to day maintenance and running of commercial activities remained with the owner of the cinema owner and the assessee had no control or interference whatsoever. The cinema was exclusively owned and managed by the cinema owner and the assessee was having no interference with selecting the films, exhibiting the films, issuing tickets, paying tax, maintaining statutory Compliances Whatsoever. Thus the agreement was not of letting out but was for conduct of business. - Decided against revenue - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he hearing and filed written submission, produced books of account which were rest checked. 3. CIT(A) has dismissed the appeal however, the Tribunal while considering the term of agreement reproduced in paragraph 9 in favour of assessee, in para 12 to 16 observed as under:- 12. Even otherwise, clause 5 of the agreement clearly shows that the sum in terms of gross collection if it is more than ₹ 65,00,000/- during the above period, was to be paid by the first party to the second party. Clause 5 of the agreement reads as under:- 5. That any sum in terms of Gross collection which is more than ₹ 65,00,000/- during above period will be paid by 1st part to IInd part while any deficit will be paid by IInd part to Ist Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was being paid by the second party/ Assessee to the first party/M/s. Show time Entertainment Pvt. Ltd.Thus the provisions relating to the Tax deduction at source do not come cannot come into play. 15. There are other reasons for setting aside the orders of the authorities below that operation of cinema generally requires various statutory regulations/ law such as- 1) License from the local authorities is required for the exhibition of films. 2) The cinema exhibitor is required to pay the salestax on the sale of tickets. 3) The cinema exhibitor is also required to collect and pay the entertainment tax on the sale of tickets to the revenue department. 4) The cinema owner is also required to have the statutory p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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